Question 1

Aces Company provided the following data for July:

Direct materials	$50,000
Direct labor	$25,000
Overhead	$90,000
Beginning finished goods	$15,000
Ending finished goods	$34,000
Production in units	10,000

What is the cost of goods sold?

Answers

		$165,000
		$146,000
		$214,000
		$184,000
		$75,000

Question 2

Aces Company budgeted the following sales in units:

January	30,000
February	20,000
March	40,000

Acess policy is to have 20% of the following months sales in inventory. On January 1, inventory equaled 7,500 units. February production in units is:

Answers

		20,000.
		28,000.
		24,000.
		26,500.
		40,000.

Question 3

Figure 8-10. Aces Company budgeted the following production in units for the first quarter of the year:

January	30,000
February	20,000
March	40,000

Each unit requires 3 pounds of raw material. Aces's policy is to have 20% of the following months production needs for materials in inventory. On January 1, the raw materials inventory equaled 11,000 pounds.

Refer to Figure 8-10. Raw materials purchases budgeted for February in pounds equal:

Answers

		72,000.
		32,000.
		91,000.
		30,000.
		54,000.

Question 4

Figure 8-10. Aces Company budgeted the following production in units for the first quarter of the year:

January	30,000
February	20,000
March	40,000

Each unit requires 3 pounds of raw material. Aces's policy is to have 20% of the following months production needs for materials in inventory. On January 1, the raw materials inventory equaled 11,000 pounds.

Refer to Figure 8-10. Desired ending inventory for January in pounds equals:

Answers

		12,000
		6,000
		3,000
		4,000
		11,000

Question 5

Aces Company budgeted 200,000 units for June, 210,000 for July and 300,000 for August. Each unit requires 0.25 direct labor hours. How many direct labor hours are budgeted for August?

Answers

		50,000
		5,000
		75,000
		52,500
		300,000

Question 6

Figure 8-2. Aces Company manufactures pottery. Production of large garden pots for the coming three months is budgeted as follows:

May	20,000
June	40,000
July	35,000

Each pot requires 30 minutes of direct labor time. Direct labor wages average $15 per hour. Monthly overhead averages $4 per direct labor hour plus fixed overhead of $2,100.

Refer to Figure 8-2. What is the direct labor cost budgeted for June?

Answers

		$20,000
		$300,000
		$40,000
		$150,000
		$525,000

Question 7

Figure 8-2. Aces Company manufactures pottery. Production of large garden pots for the coming three months is budgeted as follows:

May	20,000
June	40,000
July	35,000

Each pot requires 30 minutes of direct labor time. Direct labor wages average $15 per hour. Monthly overhead averages $4 per direct labor hour plus fixed overhead of $2,100.

Refer to Figure 8-2. What is the total overhead budgeted for the month of June?

Answers

		$80,000
		$82,100
		$42,100
		$160,000
		$162,100